The Dow Jones Industrials are still in the consolidation zone. They have not broken either trendline. The last low the bulls actually one since it was a higher low than the previous one. But the bulls have not been able to make a higher high since the end of may. This consolidation could go into October when a breakout could occur. The stochs are once again in the overbought range.
The S&P 500 are very similar to the DJIA. This week could determine if the break out is real. If Monday the market drops, it could go back down to 1,500 over the next few days. It may be forming a flag, which could be a continuation flag for the overall market.
The Nasdaq is still going up. This shows the overall market is still fairly strong. It is getting close to the top of the channel and should experience a pull back back to the middle of the channel in the next couple of day or maybe even back to the lower part of the channel. The stochs are very high so expect a turn in the overall market for the short term. The long term trend is up. Expect it to continue
The Russell 2000 will be the one to watch on July 9th. If the overall market is up, it should cross the previous high of 855. That would break the resistance at 855 and could allow it to continue up to 882. With the stochs being overbought again, a pullback could be expected. Profit taking could be done. Also as we are two weeks from options expiration, we should expect some of the market makers to start pinning the market. I would not expect it to be much above 850 in the next two weeks. Expect a pull back to that level due to options expirations.
The S&P 500 are very similar to the DJIA. This week could determine if the break out is real. If Monday the market drops, it could go back down to 1,500 over the next few days. It may be forming a flag, which could be a continuation flag for the overall market.
The Nasdaq is still going up. This shows the overall market is still fairly strong. It is getting close to the top of the channel and should experience a pull back back to the middle of the channel in the next couple of day or maybe even back to the lower part of the channel. The stochs are very high so expect a turn in the overall market for the short term. The long term trend is up. Expect it to continue
The Russell 2000 will be the one to watch on July 9th. If the overall market is up, it should cross the previous high of 855. That would break the resistance at 855 and could allow it to continue up to 882. With the stochs being overbought again, a pullback could be expected. Profit taking could be done. Also as we are two weeks from options expiration, we should expect some of the market makers to start pinning the market. I would not expect it to be much above 850 in the next two weeks. Expect a pull back to that level due to options expirations.
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